Hemp Fiber Market Size To Reach $1.99 Billion By 2033

Hemp Fiber Market Growth & Trends

The global hemp fiber market size is anticipated to reach USD 1.99 billion by 2033, registering a CAGR of 20.4% from 2025 to 2033, according to a new report by Grand View Research, Inc. The market is experiencing robust growth due to a rising shift toward sustainable and eco-friendly raw materials across diverse industries. As climate change concerns intensify and governments impose stricter environmental regulations, businesses are increasingly seeking natural, biodegradable, and renewable alternatives to conventional materials like cotton, plastic, and synthetic fibers. Hemp, known for its minimal water and pesticide requirements, fast growth cycle, and soil-enriching qualities, has emerged as a viable option for industries ranging from fashion and construction to automotive and packaging. This broad applicability, coupled with growing awareness among consumers and producers about hemp’s environmental benefits, is significantly boosting global demand.

Key drivers propelling the market include favorable regulatory changes, rising demand for sustainable textiles, and increasing applications in biocomposites and green building materials. The legalization of industrial hemp cultivation in regions such as the U.S., parts of Europe, and Asia-Pacific has paved the way for commercial-scale production and investment. Simultaneously, the fashion industry is moving toward circular models and natural fibers, pushing brands to adopt hemp in apparel, accessories, and home furnishings. Additionally, hemp’s use in construction-through materials like hempcrete, insulation, and particleboard-is growing in response to green building initiatives and demand for low-carbon housing solutions.

Innovations are accelerating market expansion by improving processing efficiency and enhancing hemp fiber quality. Technological advancements in decortication, enzymatic fiber treatment, and fiber blending have enabled the production of finer, softer hemp fabrics that are more compatible with modern textile manufacturing. In the construction and automotive sectors, innovation is focused on developing hemp-based composite panels, lightweight car parts, and high-performance insulation materials. Moreover, research into genetically modified hemp varieties is improving fiber yield and strength, enabling more consistent industrial use and product standardization, which is critical for mass production.

Emerging trends in the market include the rise of hemp-based e-textiles, growth in hemp bioplastics, and increased government and corporate investment in hemp processing infrastructure. Companies are exploring hemp’s potential in wearable technology by integrating it with conductive materials, creating smart clothing that is both functional and sustainable. Hemp-derived bioplastics are being used in packaging, disposable products, and consumer goods, offering a biodegradable alternative to petrochemical-based plastics. Furthermore, collaborative efforts between public agencies and private firms are fueling the development of local and regional hemp supply chains, ensuring consistent raw material availability and market resilience, positioning hemp fiber as a critical component of the global green economy.

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Hemp Fiber Market Report Highlights

• Asia Pacific dominated the market with the largest revenue share of 23.9% in 2024, driven by strong demand for sustainable textiles, bioplastics, and construction materials.

• Based on application, the E-textiles segment is expected to grow at the fastest CAGR of 22.6% over the forecast period.

• The growth is driven by the rising demand for sustainable and biodegradable materials.

Hemp Fiber Market Segmentation

Grand View Research has segmented the global hemp fiber market on the basis of application and region:

Hemp Fiber Application Outlook (Revenue, USD Million, 2021 - 2033)

• Fashion & Textile

• Sportswear

• Workwear

• E-textiles

• Others

Hemp Fiber Regional Outlook (Revenue, USD Million, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • Japan

  • South Korea

• Central & South America

  • Brazil

• Middle East & Africa

  • UAE

List of key players in the hemp fiber market

• HempFlax

• Ecofibre

• Hemp?Inc.

• GenCanna

• HempCo

• Konoplex

• Dun Agro Hemp Group

• Cavac Biomateriaux

• BaFa

• American Hemp, LLC